By Kenneth Lim
Boston, Oct. 24 - Canada's Enterra Energy Trust on Tuesday priced C$120 million of five-year convertible subordinated unsecured debentures at a coupon of 8% and an initial conversion premium of 11.8%.
The deal was concurrently offered with a C$35 million shelf offering of trust units at C$8.50 per unit. The initial conversion price is C$9.50.
There is an over-allotment option of C$18 million for the convertible deal and C$5.26 million for the stock sale.
Scotia Capital is bookrunner and CIBC World Markets co-lead of the Regulation S offering.
Enterra, a Calgary, Alta.-based oil and gas trust with assets in Canada and the United States, said the proceeds of the deal will be used to repay all its debt under outstanding bridge facilities that were incurred to help finance the trust's acquisition of assets in Oklahoma.
Issuer: | Enterra Energy Trust
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Issue: | Convertible subordinated unsecured debentures
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Bookrunners: | Scotia Capital and CIBC World Markets
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Amount: | C$120 million
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Greenshoe: | C$18 million
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Maturity: | Dec. 31, 2011
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Coupon: | 8%
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Price: | Par
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Yield: | 8%
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Conversion premium: | 11.8%
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Conversion price: | C$9.50
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Conversion ratio: | 105.2632
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Pricing date: | Oct. 24
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Settlement date: | Nov. 9
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Distribution: | Regulation S
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